Question:The manufacturing costs of Alex Industries for the first three months ofthe year are provided below.Total Costs ProductionJanuary $566,350February 388,800March604,8004,310 units2,400 units6,400 unitsUsing the high-low method, determine:(a) the variable costs per unit and(b) the total fixed costs.(Round to nearest dollar)

The high-low method is a way to estimate the variable and fixed costs of a company by using the…

Answered: Question: The manufacturing costs of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sims Company began operations on January 1. Its cost and sales information for this year follow. $ 30 per unit $ 50 per unit $ 30 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price $ 7,700,000 per year $ 11 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Required 1 Required 2 $4,750,000 per year 110,000 units 80,000 units $360 per unit Complete this question by entering your answers in the tabs below. Prepare an income statement for the year using variable costing. SIMS COMPANY
The manufacturing costs of Calico Industries for 3 months of the year are as follows: Total Cost Production (units) April $111,100 276,200 May 82,600 163,200 June 106,300 244,600 Using the high-low method, the variable cost per unit and the total fixed costs are Round your intermediate calculations to two decimal places. a.$2.50 per unit and $4,205, respectively b.$4.50 per unit and $4,205, respectively c.$0.25 per unit and $42,050, respectively d.$0.45 per unit and $21,025, respectively
The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $264,960 1,380 units February 392,730 2,330 March 412,160 3,680 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit $fill in the blank 1 b. Total fixed cost $fill in the blank 2
The manufacturing costs of Kellam Industries for the first three months of the year follow: Total Costs Units Produced January $318,060 2,015 units February 357,640 3,850 March 494,760 5,115 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit $fill in the blank 1 b. Total fixed cost $fill in the blank 2
The manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April $85, 160 1,600 Units May 89,064 2,240 Units June 95, 225 3,250 Units (a) Using the high - low method, determine the variable cost per unit. Round your answers to two decimal places. $ fill in the blank 1 per unit (b) Using the high-low method, determine total fixed costs. $ fill in the blank 2
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Sims Company began operations on January 1. Its cost and sales information for this year follow. $40 per unit $ 60 per unit $30 per unit $7,350,000 per year $ 11 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Required 1 Required 2 Prepare an income statement for the year using variable costing. Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses SIMS COMPANY Income Statement (Variable Costing) Fixed overhead Fixed selling and administrative expenses Income + $4,750,000 per year 105,000 units 75,000 units $360 per unit → 7,350,000✔ 4,750,000 $ 27,000,000 0 12,100,000
Zachary Company's cost and production data for two recent months included the following: Production (units) Rent Utilities March 900 $1,200 $ 800 April 1,100 $1,200 $ 978 Required a. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. b. Identify which cost is variable and which is fixed.
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,142 15,489 April 2,691 10,041 May 2,810 11,509 4 June 3,881 18,009 a. $0.15 b. $1.05 O c. $1.64 Od. $1.01 10:21 PM 670002 K 63°F
Jason Inc. provides the following manufacturing costs for the first four months of the year. Manufacturing Costs for the First Four Months Months Production in Units Total Costs January 2,500 $33,750 February 1,800 $29,900 March 3,000 $36,500 April 2,600 $34,300 Using the high-low method, determine the total fixed costs. (Round intermediate calculations to two decimal places, and the final calculation to the nearest dollar.) Group of answer choices $15,500 $20,000 $30,300 $16,500
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Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years operations: es aw all Variable costs per unit: Manufacturing: Direct materials. Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $53 per unit. Req 1A 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and…

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